Aave-Led Fund ‘DeFi United’ Raises $300 Million To Cover Kelp DAO Exploits Losses

A practical service to help people to raise money following Kelp DAO 290 million $ 290 million this month through the hard limit on Monday, receiving enough donations to be able to hack the biggest financial hack in the near future.

An organization called DeFi United, promoted by Aave founder and CEO Stani Kulechov, has raised 132,650. Ethereum (ETH), according to website. With Ethereum recently changing hands at around $2,300, the coin was worth around $303 million.

DeFi United plans to use the money to restore rsETH, the token that Kelp DAO opponents stole and used to borrow more money from Aave on April 18. Since the unused money was stolen, Aave’s money has been crushed, shaking confidence in DeFi deeply.

Over the past day, donations have been flowing. On Monday, Ethereum development company Consensys said in X. post that it offered 30,000 ETH. The Avalanche Foundation said in X post that it was supporting the effort. (Disclosure: Consensys is one of the 22 investors in independent speech Decrypt.)

Although DeFi United has received enough donations to offset the value of rsETH that North Korean-linked attackers have hijacked, the total amount raised depends on pending votes for other DeFi projects such as Mantle, Ether.Fiand Lido.

The DeFi United website makes it clear that the service project is not guaranteed to succeed, emphasizing how its plan relies on several moving parts, especially the ability of the token holders who control the various DeFi projects to agree to a common agreement.

For example, the security organization that manages the layer-2 Ethereum scaling network Arbitrum actually froze 30,765 Ethereum that the attackers left in the open. A an idea to transfer the money to DeFi United estimates that the process will take about 49 days.

In the meantime, people are trying to reduce the amount of money on Aave in other ways. Tron founder Justin Sun, for example, said in X post On Monday Tron DAO and crypto exchange HTX will offer $20 million of Tether’s USDT stablecoin on the Aave platform.

When the Kelp DAO attackers borrowed money from Aave, they exchanged rsETH for Ethereum, which prevented investors from withdrawing money. Many of those affected turned to stablecoins, borrowing tokens as a way to withdraw money from the lending platform.

On Monday, the so-called market share of USDT and Circle’s USDC stablecoin was around 92%, according to Avescan. After being squeezed at nearly 100% for several days last week, the metric showed that the decline in investment has eased a bit.